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The Decree No.119/2018/ND-CP (“Decree 119”) on the use of electronic invoices (e-invoices) for the sale of goods and services is effective since November 1, 2018 and the implementation shall be completed by enterprises, economic or other organizations, business households and individuals by November 1, 2020.

During the period from November 1, 2018 to October 31, 2020, the Decree No. 51/2010/ND-CP dated May 14, 2010 and the Decree No. 04/2014/ND-CP dated January 17, 2014 of the Government on sales and service invoices shall remain in effect and this is called the Transition Period.

Types of e-invoices

There are two (02) types of e-invoices: e-invoice and e-invoice with Tax Authorities’ verification codes.

Firms in the electricity, petroleum, telecommunication, credit financing, transportation, e-commerce, insurance, supermarkets, and trading sectors can use e-invoices without verification codes. In addition, enterprises that transact directly with the tax authorities electronically or have the technology infrastructure, accounting software, and e-invoice software as per regulations are not required using e-invoices with verification codes.

For individual and companies involved in the agriculture, forestry, fishery, industry, and construction sectors employing more than 10 labourers and having annual revenue over VND 3 billion in the preceding year must use e-invoices with verification codes. In the trade and services sector, if the individuals and companies have annual revenue of over VND 10 billion, they need to use e-invoices with verification codes.

Issuing e-invoices

Companies need to register before they use e-invoices (with or without tax verification codes) to get approval from the tax authorities through the General Department of Taxation’s website.

Business and individuals selling goods or providing services need to issue an e-invoice (with or without tax verification codes) to the buyer in a standardized format prescribed by the tax authorities. They are required to provide all the necessary information, regardless of the invoice value.

In case a POS system is used, the seller needs to register for the use of e-invoices sent by the POS system for online transfer of data with the tax department.

Conversion into paper invoices

The conversion of e-invoices into paper invoices is only for the purpose of recording and monitoring in accordance with the Law on Accounting and is not valid for executing transaction or payment.

For goods in transit, authorities or authorised persons can access the Web Portal of the GDT for detail information of the invoice.

The taxpayers who use the paper form of e-invoices as accounting voucher need to maintain the e-form of the invoice for tax and audit purposes under current regulation.

Transition period

During the transition period, i.e. from 1 November 2018 to 31 October 2020, taxpayers who have already self-printed their invoices or have received invoices issued by the tax authorities before November 1, 2018, can use them till the end of October 31, 2020.

During the transition period, in case a taxpayer uses up its stock of pre-printed invoices which have been notified for usage, and the taxpayer would like to continue using pre-printed invoices, the taxpayer is allowed to do so in accordance with the above decrees prior to converting to use of e-invoices pursuant to Decree 119/2018/ND-CP (under Official letter no. 4311/TCT-CS dated 5 November 2018).

In the case where the tax authorities have notified taxpayers to switch to e-invoices between November 1, 2018, and October 31, 2018, and the taxpayers fail to meet the information technology infrastructure requirements, they need to send their invoice data to the tax office. The tax office will use those invoices for their database and post them on the General Department of Taxation’s information portal.

Public organizations such as medical establishments and schools that use fee receipts are allowed to continue using the receipts but need to move to electronic receipts or e-invoices according to the roadmap of the Ministry of Finance.